State of New Hampshire
PRACTICAL ETHICS ARTICLE: MAY 21, 1987
The New Hampshire Bar authorities do not officially address the ethics of an attorney borrowing funds from a third party funding company. However, Practical Ethics Article: May 21, 1987 (“Law Firm Use of Outside Services Providers”) acknowledges and supports opinions that have condoned attorney borrowing from financial companies to fund litigation.
Excerpts from Massachusetts Ethics Opinion 83-7:
The Article stresses the caveat that the confidentiality of the attorney-client relationship must not be breeched. It is not mandatory to inform the client that the attorney will receive funds from a lending company. However, the Article states that clients who may not know that the use of these outside funding resources is commonplace in today´s legal system should be informed of this, and should be further informed that such an company´s services may (or will) be utilized in their case.
Please reference your local state ethics rules.